The Childcare fix: How the Productivity Commission believes we can improve our childcare system - Women's Agenda

The Childcare fix: How the Productivity Commission believes we can improve our childcare system

Let us know what you think of these key recommendations, and how they could help your current situation, in the comments field below.

Streamlining multiple child-based subsidies into one system, rebates for nannies, and placing more responsibility on school principals.

These are just some of the recommendations in the Productivity Commission’s Childcare and Early Childhood Learning draft report, released today in the lead up to its full report due in September 2014.

It found that despite childcare and early education receiving around $7 billion a year in government funding, too many parents still report difficulties accessing suitable and affordable childcare services.

As such, it’s drafted a range of measures for reforming the existing system which it believes can make childcare more ‘accessible, affordable and flexible’, and ultimately benefit the community at large.

However, given broader welfare settings, it also concedes that its recommended changes to early education and childcare assistance and accessibility will, “Only do so much to improve workforce participations”. It estimates such changes would see an additional 47,000 fulltime workers, amounting to a labour supply increase of 0.4%. As for GDP, it predicts its changes would ‘at most’ bring in an additional $5.5 billion a year.

Some of the key recommendations in the more than 600-page report include:

Childcare support. Replacing current multiple childcare subsidies with a single subsidy that is paid directly to childcare providers
Means-testing. Means and activity testing for childcare subsidies, with all parents receiving a minimum of 30% of reasonable childcare fees, extending to 90% for low income families.
100 hours. Subsidies should support childcare services for up to 100 hours per fortnight.
Nannies. Appropriately qualified nannies should be eligible for childcare subsidies, excluding au pairs.
Occasional care. Current restrictions on places and opening hours placed on occasional care providers should be removed.
After school care. More responsibility should be placed on school principals for ensuring schools offer suitable before and after school care for students and preschoolers.
Preschool. Government support for all children to access preschool one year before starting school must be continued.
Children with disabilities and special needs. ‘Top up’ subsidies should be offered for children with disabilities, while viability assistance should be provided to regional, rural and remote areas with fluctuating child populations.
National Quality Framework. This framework must not only be retained, but “modified and extended” to all early childhood education and childcare services – including by removing a cap on occasional care services and extending rebates to nannies.

What do you think? Let us know below.

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